The investment, along with £25m from the Funding Circle SME Income Fund, will enable more than £200m of new loans over seven years, the crowdfunding platform said.
To date, Funding Circle said it has facilitated more than £1.25bn of loans to 16,000 businesses in the UK since launching in 2010.
In April, the European Investment Fund, which is part of the European Investment Bank Group, and KfW, a German government-backed bank, announced plans to invest in the securitisation of loans originated on Funding Circle.
Jonathan Taylor, vice president of the EIB, said the partnership demonstrates the bank’s “firm commitment to seeking out new ways to stimulate business investment across Europe”.
He added: “The £100 million backing will not only unlock over £200 million of new investment by small businesses across the UK, but also provides an innovative model for supporting SMEs that could be used elsewhere in Europe.”
Samir Desai, chief executive and co-founder of Funding Circle, said: “Our partnership with the European Investment Bank is the first of its kind and represents another important step on our journey to creating a global marketplace where creditworthy businesses borrow from a diverse range of investors.
“This significant investment will ensure more businesses access the finance they need to grow and will help support economic growth and job creation across the UK.”